Gaming/VR/AR pitch night at Startup Victoria

Building on the successful format that has been the mainstay of Startup Vic‘s regular meetups for the past few years, February’s pitch night kicked off a scheduled programme of thematic events for 2017. First up was Gaming, VR and AR.

Photo by Daniel C, sourced from the Startup Victoria Meetup page

Hosted as usual by inspire9, the event drew a packed crowd, no doubt helped by the impressive panel of judges assembled by the organisers:

Dr Anna Newberry, responsible for driver-assistance technologies at Ford Australia; Stefani Adams, Innovation Partner at the Australia Post Accelerator; Tim Ruse, CEO of Zero Latency; Rupert Deans, Founder and CEO of Plattar; Samantha Hurley, Co-Founder and Director of Marketing Entourage; Gerry Sakkas, CEO of PlaySide Studios; and Joe Barber, a Commercialisation Advisor to the Department of Industry and Science, a Mentor at the Melbourne Accelerator Program (MAP), and angel investor.

Maintaining the tradition of this blog, I will comment on each startup pitch in the order in which they presented.

Metavents

This niche business offers an event planning app for festivals. At its heart is a tool that allows users to build a 3-D simulation of proposed events, combined with an AI capability to simulate risk management, logistics and team communications, plus a digital time capsule where event attendees can upload photos and other content.

Once licensed to event planners and organisers, the platform charges clients $1 per ticket sale, plus a 2.5% fee on donations and fees for other content and services such as the digital time capsule. In addition, Metavents is building strategic partnerships, and announced a relationship with the Vihara Foundation and its Rock Against Poverty programme from 2018.

All good so far. Then, things got a bit confusing. For example, in addition to festival and event logistics, Metavents claims to offer humanitarian support services in response to natural disasters, and emergency management capabilities for smart cities. There was also talk of a global network (linked to the UN?), and an impact investment fund.

I’m sure I wasn’t alone in thinking that the pitch was a bit disjointed and suffered from a lack of focus. But the pitch did reveal something of the founders’ core passion, and incorporated some impressive graphics – it just felt like a case of form over substance.

Second Sight

Second Sight is a game analytics service that “unlocks the secrets in player data”, by enriching existing big data sources with social media interactions. It does this by profiling players based on their behaviours, and providing this feedback and insights to game developers and product managers. Focusing on the mobile game market, Second Sight is initially targeting independent developers, and will then move on to corporate game businesses.

Second Sight’s own development path is to build automation tools first, then create a library of tasks and insights. With an estimated 1 million users (based on game statistics), 3 paying clients and another 27 beta clients, this startup is showing some promising market traction. However, there are a number of established competitors, including Omniata (which is more of a general user analytics engine, like Mixpanel or Flurry), GameAnalytics, deltaDNA and Xsolla, some of which offer free user services.

In response to the “ask”, ($500k in seed funding in return for 20% equity), the judges suggested that Second Sight might want to address the needs of a specific game sector.

Dark Shadow Studio

This presentation featured an application called Drone Legion, that merges drone experience with VR. Part simulation game, part training software, it was nice to see a demo of the app running in the background, without detracting from the pitch itself.

A key point made by the presentation is that the Civil Aviation Safety Authority (CASA), which is responsible for regulating drones in Australia, is in danger of falling behind other countries. For example, Drone Legion could be adapted to provide user training, testing and licensing before a customer buys a physical drone.

Although there are drone simulators available via Steam, they are not aimed at the general public. Drone Legion is also compatible with a range of gaming consoles.

The judges suggested that this pitch was more an individual game, rather than a business, so it was suggested that the founders should try to get funding from HTC or Oculus to build their first game. And given that one of the judges works for Australia Post (ostensibly a logistics company with a growing interest in drone technology….), there was the offer of a personal introduction.

Phoria

Phoria describes itself as an “immersive media business”, offering rapid 3-D visualisation (especially for the property development sector and the built environment),  and other services such as digital preservation.

But tonight, the pitch was about a plan to use “VR for social good”. Under the moniker “Dreamed”, Phoria is developing a niche health care solution, designing “patient experiences” to help them get out of their current care or treatment environment.

Predicated on an immersive therapy platform, Dreamed will offer a distribution service for cloud-based content, designed to be used alongside other, related assisted therapies that feature Animals, Nature and Music as stimulants for patient engagement and therapeutic outcomes. While not exactly a MedTech solution, Phoria’s “IP special sauce” is the use of VR as a constant dynamic feedback loop, which presumably learns from and adapts to user interaction and monitoring of appropriate patient diagnostics.

So, who pays for the service? Hopefully, hospitals will, especially if they can demonstrate reduced therapy costs and patient treatment times. (Maybe there will also be a consumer market alongside existing meditation apps?) But with some early-stage and potentially high-profile research underway via the Murdoch Childrens Research Institute, Phoria and Dreamed look to be making steady progress, notwithstanding the normally slow pace of medical research. Key to the research outcomes will be user acceptance and ease of service and content delivery, although a large number of unknowns remain in the context of the medical benefits. Meanwhile, Phoria continues to serve its core property market.

Finally, something which I found somewhat surprising, according to the presentation, there is no VR content licensing model currently available. Sounds like a job for a decentralized digital asset management and licensing registry (such as MyBit?).

On the night, and based on the judges’ votes, Phoria took out first place honours.

Next week: The Future of Work = Creativity + Autonomy

 

What might we expect in 2017?

On a number of measures, 2016 was a watershed year. Unexpected election results, fractious geopolitics, numerous celebrity deaths, too many lacklustre blockbuster films, spectacular sporting upsets (and regular doping scandals), and sales of vinyl records are outpacing revenue from digital downloads and streaming services. What might we expect from 2017?

Detail from "The Passing Winter" by Yayoi Kusama (Photo by Rory Manchee)

Detail from “The Passing Winter” by Yayoi Kusama [Photo by Rory Manchee]

Rather than using a crystal ball to make specific predictions or forecasts, here are some of the key themes that I think will feature in 2017:

First, the nature of public discourse will come under increased scrutiny. In the era of “post-truth”, fake news and searing/scathing social commentary, the need for an objective, fact-based and balanced media will be paramount. In addition, the role of op-ed pieces to reflect our enlightened liberal traditions and the need for public forums to represent our pluralist society will be critical to maintaining a sense of fairness, openness, and just plain decency in public dialogue.

Second, a recurring topic of public conversation among economists, politicians, sociologists, HR managers, career advisors, bureaucrats, union leaders, technologists, educators and social commentators will be the future of work. From the impact of automation on jobs, to the notion of a universal basic income; from the growth of the gig economy, to finding purpose through the work we do. How we find, engage with and navigate lifelong employment is now as important as, say, choosing high school electives, making specific career choices or updating professional qualifications.

Third, the ongoing focus on digital technology will revolve around the following:

  • The Internet of Things – based on a current exhibit at London’s Design Museum, the main use cases for IoT will continue to be wearable devices (especially for personal health monitoring), agriculture, transport and household connectivity
  • Fintech – if a primary role of the internet has been for content dissemination, search and discovery, then the deployment of Blockchain solutions, the growth in crypto-currencies, the use of P2P platforms and the evolution of robo-advice are giving rise to the Internet of Money
  • Artificial Intelligence – we are seeing a broader range of AI applications, particularly around robotics, predictive analytics and sensory/environmental monitoring. The next phase of AI will learn to anticipate (and in some cases moderate) human behaviour, and provide more efficacious decision-making and support mechanisms for resource planning and management.
  • Virtual Reality/Augmented Reality – despite being increasingly visible in industries like gaming, industrial design, architecture and even tourism, it can feel like VR/AR is still looking for some dedicated use cases. One sector that is expected to benefit from these emerging technologies is education, so I would expect to see some interesting solutions for interactive learning, curriculum delivery and student assessment.

Fourth, and somewhat at odds with the above, the current enthusiasm for the maker culture is also leading to a growing interest in products that represent craft, artisan and hand-made fabrication techniques and traditions. Custom-made, bespoke, personalized and unique goods are in vogue – perhaps as a reaction to the “perfection” of digital replication and mass-production?

Fifth, with the importance of startups in driving innovation and providing sources of new economic growth, equity crowdfunding will certainly need to come of age. Thus far, this method of fund-raising has been more suited (and in many cases, is legally restricted) to physical products, entertainment assets, and creative projects. The delicate balance between retail investor protection and entrepreneurial access to funding means that this method of startup funding is constrained (by volume, amounts and investor participation), and contrary to stated intentions, can involve disproportionate set up costs and administration. But its time will come.

Finally, as shareholder activism and triple bottom line reporting become more prevalent (combined with greater regulatory and compliance obligations), I can see that corporate governance principles are increasingly placing company directors in the role of quasi-custodians of a company’s assets and quasi-trustees of stakeholder interests. It feels like boards are now expected to be the conscience of the company – something that will require directors to have greater regard to the impact of their decisions, not just whether those decisions are permitted, correct or good.

One thing I can predict for 2017, is that Content in Context will continue to comment on these topics, and explore their implications, especially as I encounter them through the projects I work on and the clients I consult to.

Next week: The FF17 Semi Finals in Melbourne

Update on the New #Conglomerates

My blog on the New Conglomerates has proven to be one of the most popular I have written. I’d been contemplating an update for a while, even before I heard this week’s announcement that Verizon is buying the bulk of Yahoo!. Talk about being prescient…. So, just over two years later, it feels very timely to return to the topic.

Image sourced from dc.wikia.com

Image sourced from dc.wikia.com

Of the so-called FANG tech stocks, when I was writing back in May 2014, Facebook had recently acquired WhatsApp and Oculus VR. However, apart from merging Beats Music into its own music service, Apple has not made any big name deals, but has made a number of strategic tech acquisitions. Meanwhile, Amazon has attempted to consolidate its investment in delivery company, Colis Privé, but got knocked back by the French competition regulators. Netflix finally launched in Australia in March 2015, and within 9 months had 2.7 million customers, a growth rate of 30% per month. Finally, Google has since renamed itself Alphabet, and purchased AI business Deep Mind.

Over the same period, Microsoft appears to have reinvigorated its strategy: back in May 2014, Microsoft had just completed its acquisition of Nokia. Since then, Microsoft has announced it is buying LinkedIn (following the latter’s purchase of Lynda.com in 2015), but has also shut down Yammer, which it had only bought in 2012. The acquisition of LinkedIn has been framed as a way to embed corporate, business and professional customers for its desktop and cloud-based productivity tools (and maybe give a boost to its hybrid tablet/laptop PCs). On the other hand, Microsoft has a terrible track record with content-based products and services, as evidenced by the Encarta fiasco, and the fact that Bing is an also-ran search engine. I think the jury is still out on what this transaction will really mean for LinkedIn’s paying customers.

So, what are the big tech themes, and where are the New Conglomerates competing with each other?

First, despite being the “next big thing”, VR/AR is still some way off being fully mainstream (although Pokémon GO may change that….). Apple and Google will continue to go head-to-head in this space.

Second, content streaming is not yet the new “rivers of gold” for publishing (and the sale of Yahoo! might confirm that there’s still gold in those advertising hills….). But music streaming (Apple, Spotify, Amazon and Google – plus niche services such as Bandcamp and Mixcloud) is gaining traction, and Amazon is building more content for SVOD (to compete with Netflix, Apple and Google). But quality public broadcasters such as BBC, ABC and NPR are making great strides into audio streaming (via native apps and platforms like TuneIn) and podcasting. One issue that remains is the fact that digital downloads and streaming still suffer from geo-blocking, and erratic pricing models.

Third, Amazon continues to build out its on-line retail empire, even launching private label groceries. Amazon will also put more of a squeeze on eBay, which does not offer fulfillment, distribution or logistics and is a less attractive platform for local used-goods sellers compared to say, Gumtree.

Fourth, Amazon is making a play for the Internet of Things (which, for this discussion, includes drones), but both Apple and Google, via their hardware devices, OS capabilities and cloud services, will doubtless give Amazon a run for its money. Also, watch for how Blockchain will impact this sector.

Finally, payments, AI, robotics, analytics and location-based services all continue to bubble along – driven by, for example, crypto-currencies, medtech, fintech, big data and sentiment-based predictive tools.

Next week: Another #pitch night in Melbourne…